Monday Feb 10, President Trump issued an executive order halting the initiation of new Foreign Corrupt Practices Act (FCPA) investigations and mandating a review of ongoing enforcement actions.
The order comes in the wake of several high-profile corporate settlements under the statute, underscoring the administration’s concerns that current enforcement of the 47 year old Law is detrimental to U.S. economic competitiveness and national security.
The executive order directs the Attorney General to suspend new FCPA investigations for a 180-day review period, extendable at the Attorney General’s discretion. It also requires a reassessment of ongoing cases and the issuance of revised enforcement guidelines to “restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives.”
The administration’s statement emphasizes that overbroad enforcement of the anti-bribery law has undermined the ability of U.S. companies to secure strategic business advantages abroad, particularly in critical sectors such as infrastructure and natural resources.
Citing the President’s Article II authority over foreign affairs, the order asserts that the government’s own prosecution of American businesses for “routine business practices” in foreign jurisdictions has harmed national security.
The executive order asserts that prohibitions on bribery undermine the competitiveness of US companies abroad. “U.S. companies are harmed by FCPA overenforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field,” according to a Fact Sheet issued with the order.
Both the order and fact sheet also state that the FCPA undermines “American national security” because it thwarts companies from gaining “strategic business advantages” abroad.
Legal experts anticipate that the order will lead to substantial changes in the Department of Justice’s (DOJ) approach to corporate compliance and self-reporting. It is unclear whether existing settlements will be affected, but the order directs the Attorney General to determine whether remedial measures are necessary regarding past enforcement actions.
The executive order follows a string of recent FCPA settlements involving multinational corporations. Among the most notable cases:
Recent settlements include Moog Inc., which agreed to pay nearly $1.7 million to resolve allegations of improper payments by its Indian subsidiary to officials of South Central Railway and Hindustan Aeronautics Limited. 
Additionally, in 2024, the Department of Justice and the Securities and Exchange Commission imposed significant monetary sanctions under the FCPA on several companies, including:
• SAP: $220 million for violations in countries such as South Africa, Kenya, and Indonesia.
• Gunvor: $661 million related to activities in Ecuador.
• Trafigura: $126 million concerning operations in Brazil.
• RTX/Raytheon: $360 million for violations in Qatar.
• McKinsey: $122 million related to activities in South Africa.
These settlements underscore the DOJ’s aggressive enforcement approach in recent years, which has resulted in billions of dollars in corporate penalties. However, critics have argued that such enforcement disproportionately punishes American companies while allowing foreign competitors to operate under different legal and ethical standards.
The executive order has drawn mixed reactions. Business groups and trade organizations have praised the move, arguing that it will level the playing field for American companies operating in global markets. The U.S. Chamber of Commerce released a statement calling the order “a necessary step to prevent overreach and ensure American businesses can compete effectively abroad.”
Legal and anti-corruption advocacy groups have raised concerns that the order could weaken anti-bribery safeguards and embolden corporate misconduct. Transparency International condemned the decision, warning that it may erode the credibility of U.S. anti-corruption efforts and harm international partnerships in combating financial crime.
The immediate impact on pending FCPA cases remains uncertain. The DOJ is expected to provide further guidance in the coming weeks regarding its enforcement posture under the new policy directive.
With corporate compliance teams now awaiting revised enforcement guidelines, the administration’s stance on the FCPA marks a turning point in U.S. regulatory policy, with broad implications for global business and international anti-corruption efforts.
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